American DG Energy (ADGE) 10-Q 11 Aug 16 2016 Q2 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	6 Months Ended
	Jun. 30, 2016	Aug. 11, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN DG ENERGY INC
Entity Central Index Key	1,378,706
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	adge
Entity Common Stock, Shares Outstanding		50,684,095
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 3,164,151	$ 5,587,528
Accounts receivable, net	819,621	937,706
Unbilled revenue	14,410	12,468
Due from related party	71,832	99,548
Inventory	857,050	1,112,853
Prepaid and other current assets	448,265	752,397
Total current assets	5,375,329	8,502,500
Property and equipment, net	17,924,686	25,467,049
Investment in EuroSite	6,434,676	0
Other assets, long-term	21,359	52,829
TOTAL ASSETS	29,756,050	34,022,378
Current liabilities:
Accounts payable	265,816	575,248
Accrued expenses and other current liabilities	241,840	544,624
Due to related party	378,851	1,171,863
Total current liabilities	886,507	2,291,735
Long-term liabilities:
Convertible debentures	0	1,585,264
Convertible debentures due related parties	8,708,960	17,030,070
Note payable - related party	0	2,000,000
Total liabilities	9,595,467	22,907,069
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 50,684,095 issued and outstanding at June 30, 2016 and December 31, 2015, respectively	50,684	50,684
Additional paid-in capital	58,745,113	49,641,620
Accumulated deficit	(38,699,249)	(40,622,774)
Total American DG Energy Inc. stockholders’ equity	20,096,548	9,069,530
Noncontrolling interest	64,035	2,045,779
Total stockholders' equity	20,160,583	11,115,309
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 29,756,050	$ 34,022,378

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) [Parenthetical] - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock,shares issued	50,684,095	50,684,095
Common stock, shares outstanding	50,684,095	50,684,095

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Energy revenues	$ 1,973,377	$ 1,871,110	$ 4,023,378	$ 4,261,457
Turnkey & other revenues	138,771	216,017	290,251	333,410
Sales Revenue, Net, Total	2,112,148	2,087,127	4,313,629	4,594,867
Cost of sales
Fuel, maintenance and installation	1,307,448	1,367,484	2,790,106	3,095,137
Depreciation expense	572,411	519,858	1,123,487	1,028,315
Cost of Goods and Services Sold, Total	1,879,859	1,887,342	3,913,593	4,123,452
Gross profit	232,289	199,785	400,036	471,415
Operating expenses
General and administrative	723,595	645,367	1,401,325	1,506,429
Selling	177,647	308,428	331,100	649,121
Engineering	234,827	215,077	484,319	385,447
Operating Expenses, Total	1,136,069	1,168,872	2,216,744	2,540,997
Loss from operations	(903,780)	(969,087)	(1,816,708)	(2,069,582)
Other income (expense), net
Interest and other income	8,385	168,167	21,226	186,433
Interest expense	(264,843)	(317,650)	(601,891)	(630,106)
Debt conversion expense	(224,782)	0	(224,782)	0
Gain on deconsolidation	3,887,098	0	3,887,098	0
Change in fair value of warrant liability	0	81	0	6,479
Other income (expense), total	3,405,858	(149,402)	3,081,651	(437,194)
Income (loss) before provision for income taxes	2,502,078	(1,118,489)	1,264,943	(2,506,776)
Provision for income taxes	6,139	2,187	(60,288)	(5,168)
Consolidated net income (loss)	2,508,217	(1,116,302)	1,204,655	(2,511,944)
(Income) loss attributable to the noncontrolling interest	516,503	(59,759)	718,870	123,449
Net income (loss) attributable to American DG Energy Inc.	$ 3,024,720	$ (1,176,061)	$ 1,923,525	$ (2,388,495)
Net loss per share - basic and diluted (in dollars per share)	$ 0.06	$ (0.02)	$ 0.04	$ (0.05)
Weighted average shares outstanding - basic and diluted (in shares)	50,684,095	50,655,021	50,684,095	50,695,201

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) attributable to American DG Energy, Inc.	$ 1,923,525	$ (2,388,495)
Loss attributable to noncontrolling interest	(718,870)	(123,449)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	1,146,186	1,052,173
Gain attributable to distribution of nonmonetary assets to noncontrolling interest	0	(157,870)
Gain on deconsolidation of subsidiary	(3,887,098)	0
Amortization of deferred financing costs	23,346	11,637
Amortization of convertible debt premium	(41,123)	(48,144)
Decrease in fair value of warrant liability	0	(6,479)
Non-cash interest expense	522,044	582,348
Stock-based compensation	200,541	280,889
Non-cash debt conversion expense	224,782	0
Changes in operating assets and liabilities:
Accounts receivable and unbilled revenue	(135,385)	79,981
Due from related party	27,716	(2,485)
Inventory	66,679	93,415
Prepaid and other current assets	276,079	322,700
Increase (decrease) in:
Accounts payable	(53,732)	(54,250)
Accrued expenses and other current liabilities	(49,658)	13,537
Due to related party	(793,012)	372,945
Other long-term liabilities	0	(2,227)
Net cash provided by (used in) operating activities	(1,267,980)	26,226
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(1,231,826)	(2,295,568)
Proceeds from sale of property and equipment	10,250	0
Partial purchase of non-controlling interest	0	(100,000)
Cash balance lost through deconsolidation	(5,127,424)	0
Net cash used in investing activities	(6,349,000)	(2,395,568)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of subsidiary common stock, net of cost	7,246,090	0
Purchases of common stock, net of costs	0	(148,510)
Payment on related party note payable	(2,000,000)	(1,000,000)
Distributions to noncontrolling interest	(52,487)	(135,582)
Net cash provided by (used in) financing activities	5,193,603	(1,284,092)
Net decrease in cash and cash equivalents	(2,423,377)	(3,653,434)
Cash and cash equivalents, beginning of the period	5,587,528	11,825,915
Cash and cash equivalents, end of the period	3,164,151	8,172,481
Supplemental disclosures of cash flows information:
Interest	66,764	90,871
Income taxes	77,498	35,838
Non-cash investing and financing activities:
Distribution of nonmonetary assets	0	340,069
Conversion of convertible debentures to common stock	2,184,264	0
EuroSite Power Inc.
Non-cash investing and financing activities:
Conversion of convertible debentures to common stock	$ 7,910,164	$ 0

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Description of Business American DG Energy Inc., or the Company, we, our or us, distributes, owns, operates and maintains clean, on-site energy systems that produce electricity, hot water, heat and cooling. The Company's business model is to own the equipment that it installs at customers' facilities and to sell the energy produced by these systems to its customers on a long-term contractual basis at prices guaranteed to the customer to be below conventional utility rates. The Company calls this business the American DG Energy “On-Site Utility”. The Company has experienced total net losses since inception of approximately $39 million . For the foreseeable future, the Company expects to experience continuing operating losses and negative cash flows from operations as its management executes the current business plan. The Company believes that its existing resources, including cash and cash equivalents and future cash flow from operations, are sufficient to meet the working capital requirements of its existing business for the foreseeable future, including the next twelve months. However, as the Company continues to grow its business by adding more energy systems, cash requirements will increase, and the Company may need to raise additional capital through debt financings or equity offerings to meet its operating and capital needs. There can be no assurance, however, that the Company will be successful in its fundraising efforts or that additional funds will be available on acceptable terms, if at all. In 2015, the Company began executing the "Initiative". The Initiative is focused on effectively investing the Company’s capital by increasing the performance of its existing sites. The goal of the Initiative is to make strategic capital improvements aimed at increasing productivity of the existing portfolio while optimizing the Company’s margins and increasing cash flow. The Company expects that the Initiative will provide a strong foundation of high performing assets that may be used to fund future growth. On May 4, 2016, the Company exchanged approximately 14.72 million of its shares in EuroSite Power, or 46% of its 48% ownership in its European subsidiary, for elimination of a portion of the outstanding 6% convertible debentures due May 2018 (see Note 5. "Convertible debentures"). This partial extinguishment of debt reduced the Company's convertible debt outstanding to $8.6 million , net of the associated discount. The Company is pursuing a similar debt exchange transaction for additional convertible debt outstanding and expects to complete that subsequent transaction in the fourth quarter of 2016 (see Note 11. Subsequent events). Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in American DG Energy Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015 . There have been no significant changes in accounting principles, practices or methods for making estimates. The accompanying unaudited consolidated financial statements include the accounts of the Company and entities in which it has a controlling financial interest. Those entities include the Company's 51.0% owned joint venture, American DG New York, LLC, or ADGNY, and EuroSite Power Inc., or EuroSite Power through June 30, 2016 at which time it was deconsolidated (see Note 4. Investment in EuroSite Power). Investments in partnerships and companies in which the Company does not have a controlling financial interest but where we have significant influence are accounted for under the equity method. The Company’s operations are comprised of one business segment. The Company’s business is selling energy in the form of electricity, heat, hot water and cooling to its customers under long-term sales agreements. Reclassification Certain prior year amounts have been reclassified to conform with current year presentation.

Income (Loss) Per Common Share

Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Income (Loss) Per Common Share	Income (Loss) Per Common Share The Company computes basic income (loss) per share by dividing net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period. The Company computes diluted earnings per common share using the treasury stock method. For purposes of calculating diluted earnings per share, the Company considers its shares issuable in connection with convertible debentures, stock options and warrants to be dilutive common stock equivalents when the exercise price is less than the average market price of its common stock for the period. For the six months ended June 30, 2016 , the Company excluded 10,203,500 potentially dilutive shares, and for the six months ended June 30, 2015 , the Company excluded 15,613,083 potentially dilutive shares because such shares would be anti-dilutive as a result of the reported net loss.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes in the accompanying unaudited consolidated statements of operations for the six months ended June 30, 2016 and 2015 differ from that which would be expected by applying the federal statutory tax rate primarily due to losses for which no benefit is recognized.

Investment in EuroSite Power (N

Investment in EuroSite Power (Notes)	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Investment in EuroSite Power	Investment in EuroSite Power As of June 30, 2016, the Company owned a 20.5% interest in the common stock of EuroSite Power which it accounts for using the equity method. Prior to June 28, 2016, the Company accounted for its investment in EuroSite Power as a consolidated subsidiary as it determined it was the primary beneficiary of EuroSite under the variable interest model. That determination included consideration of an implicit variable interest held by the Company in the form of a guarantee of the long-term convertible indebtedness of EuroSite Power. On June 28, 2016, substantially all of that convertible indebtedness was converted by the holders into shares of EuroSite Power (see Note 5 Convertible debentures), rendering the Company’s guarantee inconsequential in the determination. As a result, the Company concluded it no longer held a variable interest in EuroSite Power. The Company deconsolidated EuroSite Power in its consolidated financial statements. This required recording the remaining shares held at fair value as an equity method investment, which resulted in a gain of approximately $3.9 million . The Company utilized a market approach in determining the fair value of the shares retained which incorporated the quoted market price of the shares at the date of deconsolidation and a blockage discount. The overall initial basis difference between the fair value of the remaining shares held or carrying value at June 30, 2016 of approximately $6.4 million and the Company’s share of the underlying equity in the net assets of EuroSite Power of approximately $2.5 million is currently being evaluated and the relevant components will prospectively be amortized if appropriate and included in the determination of income. The Company will continue to provide management oversight to EuroSite Power and assist EuroSite Power in various aspects of executing our respective business plans.

Convertible Debentures (Notes)

Convertible Debentures (Notes)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Convertible Debentures	Convertible debentures On May 4, 2016, the Company settled $9.3 million of its $19.4 million outstanding 6% convertible debentures due May 2018 (“convertible debentures” or “debt”) by transferring ownership of approximately 14.72 million shares it owned of EuroSite Power to the holders of the debt. As the shares used to extinguish the debt are considered nonmonetary assets, the overall gain realized of approximately $7.2 million is composed of two elements: (1) the gain resulting from the difference between the carrying value and the fair value of the shares transferred, of approximately $7.7 million and (2) the loss from the debt extinguishment of approximately $500,000 . As the Company retained its controlling financial interest in EuroSite Power following the transaction, no gain was recognized on the transaction, rather the gain was credited to additional paid-in capital in accordance with ASC 810-10-45-23. On June 28, 2016, $2.1 million of EuroSite Power’s $2.4 million outstanding convertible debentures were converted into common stock of EuroSite Power at a price of $.54 per share. Additionally, $11,000 of accrued interest was also converted at the same price. As the price used to convert the convertible debentures was less than the then contractual conversion price of $.60 per share of common stock, the fair value of the incremental shares issued to the holders of the convertible debentures over and above the contractually required amount, or $224,782 was expensed as debt conversion expense.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity On May 12, 2016, EuroSite Power completed a private placement with related parties of 12,608,696 shares of its common stock for aggregate proceeds of $7.25 million at $0.575 per share. The shares sold in this placement are subject to a registration rights agreement where EuroSite Power has agreed to use its best efforts to register the shares issued at the request of the holder. EuroSite Power used a portion of the proceeds to pay off its debt to its former Chairman, of $2,000,000 , with the balance being retained to fund operations and growth. On January 29, 2015 , the Company entered into an exchange agreement, (or the "Exchange Agreement"), with IN Holdings Corp., a holder of more than 5% percent of the Company’s common stock, (or "IN Holdings"). In connection with the Exchange Agreement, IN Holdings transferred to the Company 1,320,000 shares of the Company’s common stock that it owned, and in exchange, the Company transferred to IN Holdings 1,320,000 shares of the common stock of EuroSite Power Inc. that it owned. The exchange was accounted for as an acquisition and retirement of treasury shares and a disposal of partial ownership of a consolidated subsidiary. As the Company retained a controlling financial interest following the exchange, no gain or loss was recognized on the disposal in accordance with ASC 810-10-45-23. In accordance with ASC 845-10-05-4, nonmonetary transactions, the fair value of the shares surrendered by the Company in the exchange were used to value the exchange. On September 19, 2014, the Board of Directors of the Company approved a common stock repurchase program that shall not exceed 1,000,000 shares of common stock and shall not exceed $1,100,000 of cost. The approval allows for purchases over a 24 -month period at prices not to exceed $1.30 per share. During the first six months of 2016 , the Company did not repurchase any shares of its common stock. During the second quarter of 2015, the Company entered into an agreement with the noncontrolling interest joint venture partner in ADGNY, whereby, in exchange for $100,000 cash and 100,000 shares of the Company’s common stock, the noncontrolling interest partner relinquished certain economic interests in certain energy system projects in the joint venture sites owned and operated by ADGNY; and ownership of certain energy system projects owned by ADGNY was transferred to the Company; and ownership of certain energy system projects owned by ADGNY was transferred to the noncontrolling interest joint venture partner. Additionally, the interests in underlying energy system projects remaining in the joint venture following the transfers of ownership of those energy system projects described in the preceding sentence, were adjusted to 51% and 49% for the Company and the noncontrolling interest joint venture partner in ADGNY, respectively. Following the foregoing series of transactions, the Company retained a controlling 51% legal interest and had a 51% economic interest in ADGNY. The relinquishment by the noncontrolling interest partner of certain economic interests in certain energy system projects in the joint venture sites owned and operated by ADGNY for the benefit of the Company and the adjustment of the respective interests in underlying energy system projects remaining in the joint venture were treated as changes in the Company’s ownership interest in ADGNY while the Company retained a controlling financial interest, and accordingly, were accounted for as equity transactions in accordance with ASC 810-10-45-23. The transfer of ownership of certain energy system projects owned by ADGNY to the noncontrolling interest joint venture partner was treated as a dividend of nonmonetary assets and was recognized at the fair value of the energy systems transferred in accordance with ASC 845-10-30-1, with a gain of $157,870 recognized in interest and other income, which is attributed entirely to the noncontrolling interest in the accompanying financial statements. The following schedule discloses the effects of changes in the Company's ownership interest in its subsidiary EuroSite Power on the Company's equity for the six months ended June 30, 2016: Net income attributable to American DG Energy Inc. $ 1,923,525 Transfers (to) from the noncontrolling interest: Increase in American DG Energy Inc.'s additional paid-in-capital for exchange of convertible debentures for common stock of subsidiary 7,903,292 Increase in American DG Energy Inc.'s additional paid-in-capital for sale by EuroSite Power of 12,608,696 common shares 7,233,482 Increase in American DG Energy Inc.'s additional paid-in-capital for conversion of EuroSite Power convertible debentures into 3,909,260 common shares of EuroSite Power 2,416,137 Noncontrolling interest share of transactions affecting subsidiary ownership (8,525,668 ) Change from net income attributable to American DG Energy Inc. and transfers (to) from noncontrolling interest $ 10,950,768

Related parties

Related parties	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Parties	Related Parties EuroSite Power, Tecogen, Ilios Inc., or Ilios are affiliated companies by virtue of common ownership and common leadership. The Company purchases the majority of its cogeneration units from Tecogen, an affiliate company sharing similar ownership. In addition, Tecogen pays certain operating expenses, including benefits and payroll, on behalf of the Company, and the Company leases office space from Tecogen. The Company's lease with Tecogen initially expires on July 31, 2016 and renews automatically until cancelled by one of the parties. These costs were reimbursed by the Company. As of June 30, 2016 , the Company owed Tecogen $378,851 , and Tecogen owed the Company $40,560 . On May 12, 2016, EuroSite Power completed a private placement with related parties of 12,608,696 shares of its common stock for aggregate proceeds of $7.25 million at $0.575 per share. The shares sold in this placement are subject to a registration rights agreement where the Company has agreed to use its best efforts to register the shares issued at the request of the holder. EuroSite used a portion of these proceeds to pay off its debt to its former Chairman, of $2,000,000 , with the balance being retained to fund operations and growth. On June 28, 2016, $2.1 million of Eurosite Power's $2.4 million of convertible debentures were converted into 3,909,260 shares of common stock of Eurosite Power at a price of $0.54 per share. Additionally, $11,000 of accrued interest was also converted at the same price. As the price used to convert the convertible debentures was less than the then contractual conversion price of $0.60 per share of common stock, the fair value of the incremental shares issued to the holders of the convertible debentures over and above the contractually required amount of $224,782 was expensed as debt conversion expense. During the first quarter of 2015, EuroSite Power repaid $1,000,000 of a related party $3,000,000 note payable in accordance with the terms of the note. The balance of $2,000,000 was repaid in connection with a private placement. On July 7, 2015, EuroSite Power, one of the Company's consolidated subsidiaries, entered into a Revolving Line of Credit Agreement, (or the "Agreement"), with Elias Samaras, EuroSite Power's Chief Executive Officer and President and a member of the Company's Board of Directors. Under the terms of the Agreement, Dr. Samaras has agreed to lend EuroSite Power up to an aggregate of $1,000,000 , upon written request. Any amounts borrowed by EuroSite Power pursuant to the Agreement will bear interest at 6% per year. Interest is due and payable quarterly in arrears. Repayment of the principal amount borrowed pursuant to the Agreement will be due on June 30, 2017. Prepayment of any amounts due under the Agreement may be made at any time without penalty. As of June 30, 2016 , no amounts have been drawn on this line. As of June 30, 2016 , EuroSite Power owed the Company $22,059 .

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The fair value topic of the FASB Accounting Standards Codification defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. The Company currently does not have any Level 1 financial assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1. Level 2 inputs include quoted prices for identical assets or liabilities in non-active markets, quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for substantially the full term of the asset or liability. The Company considers its convertible debentures a level 2 liability and believes that its carrying value approximates fair value. Level 3 - Unobservable inputs reflecting management’s own assumptions about the input used in pricing the asset or liability. In connection with recognizing the distribution of energy systems to the noncontrolling interest in ADGNY (see Note 5. "Stockholders' Equity"), the Company utilized Level 3 category fair value measurements. Those measurements employed the use of discounted cash flow analysis to determine the fair value of those energy systems. The estimated expected cash flows were discounted at a rate of 12% per annum. In connection with deconsolidation of and valuation of the Company’s remaining investment in EuroSite Power (see Note 5. "Investment in EuroSite Power"), the Company utilized a Level 3 category fair value measurement. That measurement was determined by management based on the proposed transaction disclosed in Note 11. Subsequent events, as it represents the best indication of fair value available.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company has certain commitments under agreements with certain related parties (see Note 7. "Related Parties"). The Company, in the ordinary course of business is involved in various legal matters, the outcomes of which are not expected to have a material impact on the Company's condensed consolidated financial statements.

Variable Interest Entity

Variable Interest Entity	6 Months Ended
	Jun. 30, 2016
Variable Interest Entity Disclosure [Abstract]
Variable Interest Entity	Variable Interest Entity The carrying amount and classification of assets and liabilities of the Company's consolidated subsidiary EuroSite Power, which until June 28, 2016 was considered to be a variable interest entity and for which the Company has determined it was the primary beneficiary, were as follows as of December 31, 2015 : December 31, 2015 Current assets $1,450,034 Long-term assets 7,527,266 Current liabilities 699,086 Long-term liabilities 4,536,422 As of June 30, 2016, the Company has deconsolidated EuroSite, (see Note 4. Investment in EuroSite Power).

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On August 9, 2016, the Company executed binding agreements that will result in a reduction of convertible debt outstanding to approximately $3.4 million with zero coupon due May 2018. American DG Energy will exchange approximately 9.7 million shares of EuroSite Power Inc, for the elimination of a portion of the outstanding 6% convertible debentures due May 2018. A further 5.5 million shares of EuroSite Power will be sold by the Company to affiliates for cash at $0.40 per share, with the resulting cash used for pre-payment of additional convertible debt. In conjunction with these transactions, 1.02 million warrants (expiring October 2017 at $0.60 strike price) to purchase shares of Eurosite Power common stock from the Company will also be cancelled. These transaction are expected to be completed during the fourth quarter of 2016. The Company has evaluated subsequent events through the date of this filing and determined that no other subsequent events occurred that would require recognition in the consolidated financial statements or disclosure in the notes thereto.

Description of Business and B17

Description of Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	American DG Energy Inc., or the Company, we, our or us, distributes, owns, operates and maintains clean, on-site energy systems that produce electricity, hot water, heat and cooling. The Company's business model is to own the equipment that it installs at customers' facilities and to sell the energy produced by these systems to its customers on a long-term contractual basis at prices guaranteed to the customer to be below conventional utility rates. The Company calls this business the American DG Energy “On-Site Utility”. The Company has experienced total net losses since inception of approximately $39 million . For the foreseeable future, the Company expects to experience continuing operating losses and negative cash flows from operations as its management executes the current business plan. The Company believes that its existing resources, including cash and cash equivalents and future cash flow from operations, are sufficient to meet the working capital requirements of its existing business for the foreseeable future, including the next twelve months. However, as the Company continues to grow its business by adding more energy systems, cash requirements will increase, and the Company may need to raise additional capital through debt financings or equity offerings to meet its operating and capital needs. There can be no assurance, however, that the Company will be successful in its fundraising efforts or that additional funds will be available on acceptable terms, if at all. In 2015, the Company began executing the "Initiative". The Initiative is focused on effectively investing the Company’s capital by increasing the performance of its existing sites. The goal of the Initiative is to make strategic capital improvements aimed at increasing productivity of the existing portfolio while optimizing the Company’s margins and increasing cash flow. The Company expects that the Initiative will provide a strong foundation of high performing assets that may be used to fund future growth. On May 4, 2016, the Company exchanged approximately 14.72 million of its shares in EuroSite Power, or 46% of its 48% ownership in its European subsidiary, for elimination of a portion of the outstanding 6% convertible debentures due May 2018 (see Note 5. "Convertible debentures"). This partial extinguishment of debt reduced the Company's convertible debt outstanding to $8.6 million , net of the associated discount. The Company is pursuing a similar debt exchange transaction for additional convertible debt outstanding and expects to complete that subsequent transaction in the fourth quarter of 2016 (see Note 11. Subsequent events).
Basis of Presentation	The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in American DG Energy Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015 . There have been no significant changes in accounting principles, practices or methods for making estimates. The accompanying unaudited consolidated financial statements include the accounts of the Company and entities in which it has a controlling financial interest. Those entities include the Company's 51.0% owned joint venture, American DG New York, LLC, or ADGNY, and EuroSite Power Inc., or EuroSite Power through June 30, 2016 at which time it was deconsolidated (see Note 4. Investment in EuroSite Power). Investments in partnerships and companies in which the Company does not have a controlling financial interest but where we have significant influence are accounted for under the equity method. The Company’s operations are comprised of one business segment. The Company’s business is selling energy in the form of electricity, heat, hot water and cooling to its customers under long-term sales agreements.

Stockholders' Equity Stockholde

Stockholders' Equity Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of Changes in Ownership Interest in Subsidiary Resulting ion Deconsolidation	The following schedule discloses the effects of changes in the Company's ownership interest in its subsidiary EuroSite Power on the Company's equity for the six months ended June 30, 2016: Net income attributable to American DG Energy Inc. $ 1,923,525 Transfers (to) from the noncontrolling interest: Increase in American DG Energy Inc.'s additional paid-in-capital for exchange of convertible debentures for common stock of subsidiary 7,903,292 Increase in American DG Energy Inc.'s additional paid-in-capital for sale by EuroSite Power of 12,608,696 common shares 7,233,482 Increase in American DG Energy Inc.'s additional paid-in-capital for conversion of EuroSite Power convertible debentures into 3,909,260 common shares of EuroSite Power 2,416,137 Noncontrolling interest share of transactions affecting subsidiary ownership (8,525,668 ) Change from net income attributable to American DG Energy Inc. and transfers (to) from noncontrolling interest $ 10,950,768

Variable Interest Entity (Table

Variable Interest Entity (Tables)	6 Months Ended
	Jun. 30, 2016
Variable Interest Entity Disclosure [Abstract]
Schedule of Variable Interest Entities	The carrying amount and classification of assets and liabilities of the Company's consolidated subsidiary EuroSite Power, which until June 28, 2016 was considered to be a variable interest entity and for which the Company has determined it was the primary beneficiary, were as follows as of December 31, 2015 : December 31, 2015 Current assets $1,450,034 Long-term assets 7,527,266 Current liabilities 699,086 Long-term liabilities 4,536,422

Description of Business and B20

Description of Business and Basis of Presentation (Details) shares in Thousands	May 04, 2016USD ($)shares	Jun. 30, 2016USD ($)segment	Dec. 31, 2015USD ($)
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Accumulated deficit		$ (38,699,249)	$ (40,622,774)
Number of operating segments | segment		1
American DG New York, LLC
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of owned subsidiary		51.00%
EuroSite Power Inc.
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of owned subsidiary		48.00%
6% Convertible Debentures
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Interest rate on convertible debt (percent)	6.00%
Amount of debt converted to equity	$ 8,600,000
6% Convertible Debentures | EuroSite Power Inc.
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Shares issued in conversion of debt (shares) | shares	14,720
Ownership interest in subsidiary exchanged in conversion of debt (percent)	46.00%
Interest rate on convertible debt (percent)	6.00%
Amount of debt converted to equity	$ 9,300,000

Income (Loss) Per Common Share

Income (Loss) Per Common Share (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Potentially dilutive securities excluded from computation of earnings per share	10,203,500	15,613,083

Investment in EuroSite Power (D

Investment in EuroSite Power (Details) - USD ($)	Jun. 28, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Gain on deconsolidation	$ 3,900,000	$ 3,887,098	$ 0	$ 3,887,098	$ 0
Investment in EuroSite Power		$ 6,434,676		$ 6,434,676		$ 0
EuroSite Power, Inc.
Schedule of Equity Method Investments [Line Items]
Ownership interest in EuroSite Power		20.505%		20.505%
Investment in EuroSite Power		$ 6,434,676		$ 6,434,676
Equity in the net assets of Eurosite Power		$ 2,500,000		$ 2,500,000

Convertible Debentures (Details

Convertible Debentures (Details) - USD ($)	Jun. 28, 2016	May 04, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Loss on extinguishment of debt			$ (224,782)	$ 0	$ (224,782)	$ 0
Conversion of convertible debt expense					$ 224,782	$ 0
6% Convertible Debentures
Debt Instrument [Line Items]
Amount of debt converted to equity		$ 8,600,000
Interest rate on convertible debt (percent)		6.00%
Affiliated Entity | EuroSite Power, Inc.
Debt Instrument [Line Items]
Amount of debt converted to equity	$ 2,100,000
Shares issued in conversion of debt (shares)	3,909,260
Convertible debt, related party	$ 2,400,000
Share price (dollars per share)	$ 0.54
Accrued interest on convertible debt, converted to shares	$ 11,000
Contractual conversion price (dollars per share)	$ 0.60
Conversion of convertible debt expense	$ 224,782
EuroSite Power Inc. | 6% Convertible Debentures
Debt Instrument [Line Items]
Amount of debt converted to equity		$ 9,300,000
Convertible debentures		$ 19,400,000
Interest rate on convertible debt (percent)		6.00%
Shares issued in conversion of debt (shares)		14,720,000
Gain on conversion of debt		$ 7,200,000
Gain on shares transferred		7,700,000
Loss on extinguishment of debt		$ 500,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Jan. 29, 2015	Sep. 19, 2014	May 30, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	May 10, 2016
Related Party Transaction [Line Items]
Payment on related party note						$ 2,000,000	$ 1,000,000
Ownership percentage by noncontrolling interests	5.00%
Stock repurchase program, number of shares authorized to be repurchased		1,000,000
Stock repurchase program, amount authorized		$ 1,100,000
Stock repurchase program, period in force		24 months
Stock repurchase program, maximum authorized purchase price per share		$ 1.30
Stock repurchase program, stock repurchased during period, shares						0
Gain attributable to distribution of nonmonetary assets to noncontrolling interest						$ 0	$ 157,870
American DG New York, LLC
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling interests						49.00%
Payments to acquire projects				$ 100,000
Shares issued to acquire projects (shares)				100,000
Equity investment ownership (percent)						51.00%
Legal interest in equity investment (percent)						51.00%
Affiliated Entity | EuroSite Power Inc.
Related Party Transaction [Line Items]
Payment on related party note					$ 1,000,000	$ 2,000,000
Equity Exchange Agreement | IN Holdings, Inc.
Related Party Transaction [Line Items]
Treasury stock acquired and subsequently retired	1,320,000
Stock transferred in disposal of partial ownership in consolidated subsidiary	1,320,000
Private Placement | Affiliated Entity | EuroSite Power Inc.
Related Party Transaction [Line Items]
Stock issued in private placement (shares)			12,608,696
Proceeds from private placement			$ 7,250,000
Share price (dollars per share)								$ 0.575
Private Placement | Board of Directors Chairman | EuroSite Power Inc.
Related Party Transaction [Line Items]
Payment on related party note			$ 2,000,000

Stockholders' Equity - Changes

Stockholders' Equity - Changes in Ownership Interest in Subsidiary (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Equity [Abstract]
Net income attributable to American DG Energy Inc.	$ 3,024,720	$ (1,176,061)	$ 1,923,525	$ (2,388,495)
Increase in American DG Energy Inc.'s additional paid-in-capital for exchange of convertible debentures for common stock of subsidiary			7,903,292
Increase in American DG Energy Inc.'s additional paid-in-capital for sale by EuroSite Power of 12,608,696 common shares			7,233,482
Increase in American DG Energy Inc.'s additional paid-in-capital for exchange of convertible debentures for common stock of subsidiary			2,416,137
Noncontrolling interest share of transactions affecting subsidiary ownership			(8,525,668)
Change from net income attributable to American DG Energy Inc. and transfers (to) from noncontrolling interest			$ 10,950,768

Related parties (Details)

Related parties (Details) - USD ($)	Jun. 28, 2016	May 30, 2016	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	May 10, 2016	Dec. 31, 2015	Jul. 07, 2015
Related Party Transaction [Line Items]
Payment on related party note				$ 2,000,000	$ 1,000,000
Conversion of convertible debt expense				224,782	$ 0
Note payable - related party				0			$ 2,000,000
Affiliated Entity | Tecogen
Related Party Transaction [Line Items]
Due to related parties				378,851
Due from related parties				40,560
Affiliated Entity | EuroSite Power Inc.
Related Party Transaction [Line Items]
Payment on related party note			$ 1,000,000	2,000,000
Board of Directors Chairman
Related Party Transaction [Line Items]
Note payable - related party			$ 3,000,000
Board of Directors Chairman | EuroSite Power Inc. | Line of Credit | Revolving Credit Facility
Related Party Transaction [Line Items]
Revolving line of credit maximum borrowing capacity								$ 1,000,000
Annual interest percentage								6.00%
Line of credit outstanding				0
Private Placement | Affiliated Entity | EuroSite Power Inc.
Related Party Transaction [Line Items]
Stock issued in private placement (shares)		12,608,696
Proceeds from private placement		$ 7,250,000
Share price (dollars per share)						$ 0.575
Private Placement | Board of Directors Chairman | EuroSite Power Inc.
Related Party Transaction [Line Items]
Payment on related party note		$ 2,000,000
EuroSite Power, Inc.
Related Party Transaction [Line Items]
Due from related parties				$ 22,059
EuroSite Power, Inc. | Affiliated Entity
Related Party Transaction [Line Items]
Share price (dollars per share)	$ 0.54
Amount of debt converted to equity	$ 2,100,000
Convertible debt, related party	$ 2,400,000
Shares issued in conversion of debt (shares)	3,909,260
Accrued interest on convertible debt, converted to shares	$ 11,000
Contractual conversion price (dollars per share)	$ 0.60
Conversion of convertible debt expense	$ 224,782

Fair Value Measurements - Narr

Fair Value Measurements - Narrative (Details)	3 Months Ended
	Jun. 30, 2016
Fair Value, Inputs, Level 3 | American DG New York, LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected future cash flow discount, percent	12.00%

Variable Interest Entity (Detai

Variable Interest Entity (Details) - Variable Interest Entity, Primary Beneficiary	Dec. 31, 2015USD ($)
Current Assets
Variable Interest Entity [Line Items]
Variable interest entity, assets	$ 1,450,034
Noncurrent Assets
Variable Interest Entity [Line Items]
Variable interest entity, assets	7,527,266
Current Liabilities
Variable Interest Entity [Line Items]
Variable interest entity, liabilities	699,086
Noncurrent Liabilities
Variable Interest Entity [Line Items]
Variable interest entity, liabilities	$ 4,536,422

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Thousands	Aug. 09, 2016	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Convertible debentures due related parties			$ 8,708,960	$ 17,030,070
Subsequent Event
Subsequent Event [Line Items]
Convertible debentures due related parties	$ 3,400,000
Convertible Debentures | Subsequent Event
Subsequent Event [Line Items]
Interest rate on convertible debt (percent)	6.00%
EuroSite Power, Inc. | Subsequent Event
Subsequent Event [Line Items]
Shares issued in conversion of debt (shares)	9,700
EuroSite Power, Inc. | Scenario, Forecast
Subsequent Event [Line Items]
Shares to be sold for cash (shares)		5,500
Share price (dollars per share)		$ 0.40
Warrants to be cancelled (shares)		1,020
Warrants to be cancelled, strike price (dollars per share)		$ 0.60